Mizuho Maintains Ashland (ASH) Buy Recommendation

Fintel reports that on October 5, 2023, Mizuho maintained coverage of Ashland (NYSE:ASH) with a Buy recommendation.

Analyst Price Forecast Suggests 29.70% Upside

As of October 5, 2023, the average one-year price target for Ashland is 103.12. The forecasts range from a low of 84.84 to a high of $121.80. The average price target represents an increase of 29.70% from its latest reported closing price of 79.51.

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The projected annual revenue for Ashland is 2,675MM, an increase of 16.00%. The projected annual non-GAAP EPS is 7.08.

Ashland Declares $0.38 Dividend

On August 14, 2023 the company declared a regular quarterly dividend of $0.38 per share ($1.54 annualized). Shareholders of record as of September 1, 2023 received the payment on September 15, 2023. Previously, the company paid $0.38 per share.

At the current share price of $79.51 / share, the stock's dividend yield is 1.94%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.41%, the lowest has been 1.12%, and the highest has been 2.77%. The standard deviation of yields is 0.22 (n=236).

The current dividend yield is 2.41 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.33. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.40%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 750 funds or institutions reporting positions in Ashland. This is a decrease of 48 owner(s) or 6.02% in the last quarter. Average portfolio weight of all funds dedicated to ASH is 0.26%, a decrease of 12.97%. Total shares owned by institutions decreased in the last three months by 2.58% to 57,374K shares. The put/call ratio of ASH is 1.72, indicating a bearish outlook.

What are Other Shareholders Doing?

Eminence Capital holds 3,615K shares representing 7.06% ownership of the company. In it's prior filing, the firm reported owning 3,928K shares, representing a decrease of 8.63%. The firm decreased its portfolio allocation in ASH by 28.02% over the last quarter.

Neuberger Berman Group holds 1,962K shares representing 3.83% ownership of the company. In it's prior filing, the firm reported owning 1,890K shares, representing an increase of 3.65%. The firm decreased its portfolio allocation in ASH by 15.32% over the last quarter.

Diamond Hill Capital Management holds 1,704K shares representing 3.33% ownership of the company. In it's prior filing, the firm reported owning 1,277K shares, representing an increase of 25.08%. The firm increased its portfolio allocation in ASH by 8.53% over the last quarter.

Massachusetts Financial Services holds 1,699K shares representing 3.32% ownership of the company. In it's prior filing, the firm reported owning 1,246K shares, representing an increase of 26.69%. The firm increased its portfolio allocation in ASH by 11.16% over the last quarter.

IJH - iShares Core S&P Mid-Cap ETF holds 1,473K shares representing 2.88% ownership of the company. In it's prior filing, the firm reported owning 1,540K shares, representing a decrease of 4.54%. The firm decreased its portfolio allocation in ASH by 22.47% over the last quarter.

Ashland Background Information
(This description is provided by the company.)

Ashland Global Holdings Inc. is a premier global specialty materials company serving customers in a wide range of consumer and industrial markets, including adhesives, architectural coatings, automotive, construction, energy, food and beverage, nutraceuticals, personal care and pharmaceutical. Ashland has approximately 4,500 employees - from renowned scientists and research chemists to engineers and plant operators - who thrive on developing practical, innovative and elegant solutions to complex problems for customers in more than 100 countries.

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This story originally appeared on Fintel.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.